All Forum Posts by: Willem Botha

@Sam Sala The other 2 was the team from Cashflow Savvy in Indianapolis and Engelo Rumora (Real Estate Dingo) in Ohio (Ohio Cashflow).  

@Sam Sala - Will try to give a short answer for a VERY long process. - I do believe this will be different for each individual based on a number of factors. - My personal criteria was:
1) The Turnkey company needed to be FULL Turnkey - Buy, rehab, sell, and manage afterwards - ALL under "one roof"
2) When I started I needed something in a price range below $100,000
3) Needed finance - Non US Citizen, Foreign Investor, Not a resident
4) Cashflow positive
After years of research and listening to hundreds of Podcasts I got 3 on my shortlist as mentioned.

@abigail 

@Abigail Cariaga - Working with MSHB (Midsouth Homebuyers) now for about 4 years (from South Africa) and can state without a doubt that it by far the best turnkey company. I have done researched for 3 years before starting to invest in the USA. Visited 3 companies I identified and decided to go with MSHB. - Yes the waiting list is long BUT they have a system that WORKS with structure, certainty and accuracy. Highly recommended.

@Jessica Franco Yes, during that time 100% home loans was "normal" and easy to get. That property will go for around R1.5 to R1.7 million now. I am in the process of selling most of my rentals in South Africa and purchasing turnkey in Memphis.

Hi Matt

I bought a 5 bedroom house at the time. Those days I paid R200k for a 5 bedroom, 2 bathroom, double garage and swimming pool house. 

Good old days. 

Hi Matthew

Sorry for only replying to your post now (23 Days down the line).

There is no problem with house hacking in South Africa (I've done it around 20 years ago). 

In terms of down payment and mortgage - If you are a first time home buyer there is some banks what will consider a 100% or even 100% plus costs loan. Unfortunately the interest rate will probably be at prime rate plus some % points variable rate over 20 years (if requested they might consider 25 years).

All the above will only be possible for SA citizens and if it is your first home loan / purchase. After that you will probably look at 10% or more for a down payment.

Regards, Willem

Hi James

I can only confirm what you probably already know (from your colleague). In my opinion you are in excellent hands with Mid South Home Buyers. I am also a foreigner buying from South Africa. I visited them for the second time (June this year) and first visit in 2017. They are "REAL" turnkey providers - Buy, proper rehab, place tenant, manage tenant and then you buy the property. I have 2 houses and the 3rd one is very close. FYI - they have just expanded their operation to Little Rock.

Regarding the finance - I also make use of it (40% / 10 Years) - Property still cash flows (positive) and it is easy to get the loan (basically no questions asked).

Hi Marno

My opinion, 

1) You mentioned that you have a deposit ready, the banks in SA have a very strange way to look at investment / rental properties. In my experience you will battle to get re-financed and get your deposit back - the bank will most likely look at a 70 to 80% value only. The only way this might work quickly is if you have significant capital gain on the property. 

2) If you can get something that have a positive cash-flow from day one - it will be an excellent buy. Don't know if such deals exist these days.

4) The trust route is a good option BUT be aware of the associated costs - Banks charge more fees on trust mortgages, this initiation fee is higher and you might end up with a higher interest rate as well. If you plan to do this in a serious manner is probably is still worth the additional fees since it will be better in the long run for you. 

5) This is the most difficult part. Sheriff auctions are available online but be careful for rates and taxes or any other monies due on these. If you can find the right properties at the right price you are off to a great start. 

It does seem that you need to figure out what route you are comfortable with, what your risk tolerance is and how much time you have to do this. You, and only you know the answer to all these questions. You have to "pick" a starting point - educate yourself as much as possible on that specific approach and pull the trigger.

Good luck.

 YES - Midsouth Home Buyers in Memphis (Contact Liz Nowlin) - They have an excellent team. They also offer finance for foreign investors at 40% Dep, and 7.75% over 10 Years. (Works 100% for me as my goal is to get everything paid off in the next 10-12 years.

After about 2 years of podcasts and research I decided that turnkey is the way for me. I have a lot on my plate in South Africa and didn't need another "Job" or partner in the USA to make things harder. After all was said and done I earmarked 3 x providers that suited my personal criteria. We visited all of them during a trip to the US and the provider I decided on was Midsouth Homebuyers in Memphis.

I can honestly say, for me it is the best choice I ever made to go for "full turnkey" - I am buying 1 house a year, trying to speed that up to 2 / year. So currently 2 down, 3rd one is happening soon with many more to follow. -- This is probably not answering your question clearly, but my approach was (after realizing that turnkey was the way for me) - Find the best turnkey provider that sells in my budget, confirm the area / state is OK, confirm that they are a reputable outfit and commit.

Hope some of it helps.